Tesla now knows where to build the Gigafactory 3.

Tesla (Shanghai) Co., Ltd. acquired an 860,000 square meter plot of land at the Shanghai Lingang Equipment Industrial Zone in China, where it plans to build Gigafactory 3.

The purchase was done through an auction for 973 million yuan (about $140 million), which seems to be in line with previous reports.

"The land transfer agreement was signed on Wednesday, October 17, with Tesla representatives including VP of worldwide sales Robin Ren sealing the deal with the Shanghai Economics and Information Committee, the Shanghai Lingang Area Development Administration, and the Lingang Group. Addressing the agreement, Ren noted that securing the site bodes well for Tesla’s mission as a whole."

"Tesla did not give the price tag for the plot, but the Shanghai Bureau of Planning and Land Resources said on Wednesday that a plot of land of 864,885 square meters had been sold at auction at a price of 973 million yuan ($140.51 million). "

The size of the area seems to be 40% of that in Nevada for Tesla Gigafactory 1.

Tesla intends to produce at the Gigafactory 3 some 500,000 electric cars and battery packs annually. The investment cost will be no less than a few billion dollars.

It's expected that Gigafactory 3 will produce the Model Y all-electric SUV that's yet to be unveiled.

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Source: Reuters, finance.sina.cn, Teslarati